(Alliance News) - Ferrexpo PLC on Thursday said its largest shareholder Kostyantin Zhevago has stepped down from the iron ore pellet producer's board, after he was detained in France at the request of Ukrainian authorities.
Ferrexpo said that since media reports of his detainment, its board has met "regularly". Zhevago owns just over 50% of the FTSE 250 constituent.
"The bard has been informed that Mr Zhevago is prepared to step down from the board of Ferrexpo immediately. The board is taking steps to document his resignation formally and will update the market as appropriate," Ferrexpo added.
The company earlier on Thursday said it understands the detainment was "in relation to matters unrelated to Ferrexpo".
Ukraine state bureau of investigation said the matter is in relation to money laundering and the disappearance of USD113 million.
"Currently, the property of the suspected oligarch and related legal entities has been seized. In particular, shares of his enterprises worth hundreds of millions of hryvnias, corporate rights of companies, 26 real estate objects. Also, the property of other legal entities related to the former MP was seized. Among other things, these are 14 property complexes, 21 parts of property complexes, 30 non-residential premises, 10 apartments," the bureau said on Wednesday.
Ferrexpo shares closed 3.0% lower at 159.50 pence each in London on Thursday.
By Eric Cunha, Alliance News news editor
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